University challenge

March 12 2003

Funding is an ongoing concern for US universities. Margaret Cook reports.

The "security innocence" of United States universities was shattered by the
terrorist attacks on September 11, according to Nils Hasselmo, the president of
the Association of American Universities, who is currently visiting
Australia.

"There is now more careful screening of people coming in, especially
international students, and of who should have access to scholarships, labs and
research," he says.

Equally controversial is whether publication of research - "an essential
element of the scientific process" - should be restricted.

"These issues have led to a tension between the openness of research and
legitimate security concerns, and where the balance should be struck," says Dr
Hasselmo, whose visit is sponsored by the US embassy.

"However, it gives me hope that the scientific and university communities
are very heavily engaging with federal authorities to deal with these
issues."

The Association of American Universities comprises 61 American and two
Canadian research universities, including Columbia, Cornell, Harvard, Johns
Hopkins and Princeton.

Dr Hasselmo says that in the US, individual scholars usually apply for
government research grants, rather than universities receiving block funding.
Generally grants are awarded on a competitive, peer-reviewed basis but there are
increasing concerns about members of Congress awarding grants for political
reasons.

"Governments and politicians must set overall priorities," he says. "But
we argue for competitive, peer-reviewed grants rather than idiosyncratic
`earmarking' of funding because, say, a head of committee comes from a
particular state, therefore the money must go to that."

Despite this, Swedish-born Dr Hasselmo admits that his association has
"sinners in its ranks".

"Some of our members accept, and work actively for, earmarking," he says.
"It's very hard for the president of a public university to say no to a
politician who `brings home the bacon'."

Another critical issue is the "mixed economics" of American universities,
with funding coming from state and federal governments, student tuition fees,
endowments and gifts, and "self-financing".

However, the amount of government funding varies between states and
universities. For example, the University of Minnesota (where Dr Hasselmo was
president), receives about 25 per cent of its funding from the State Government,
whereas some universities get as little as 6 per cent.

A related concern is the "dramatic increase" in tuition fees. On average,
students at public universities pay $US4700 ($A7650), and students at private
universities pay $US25,000 ($A40,600) annually for tuition.

"The big issue is how much students should pay and what should come from
public coffers," says Dr Hasselmo. "But what will happen to access, to your
program and to your public responsibility when you become more dependent on
tuition? Also, how will universities sustain excellence under this
pressure?"

Some students gain federal, state or university scholarships, he adds, but
these vary in amount and availability. "Also, many grants are needs-based and
there are questions about where you cut off aid. Middle-class students often
don't get this, but their parents aren't able, or don't want, to pay."

American universities set their own admission policies but there is much
debate about the extent to which race can be used as a criterion for admission,
Dr Hasselmo says.

"The Federal Government has had an affirmative action policy over several
decades because of the educational disadvantage that minorities have suffered,"
he says. "But now there is more questioning of these methods and it has been
challenged in different courts.

"There is agreement that diversity is the key but the means to achieve this
is being intensely debated. For example, if a university gets 15,000 applicants
for 5000 places and 10,000 of these meet the (entry) standard, how do you decide
who will get in?

"It's important to have exchanges between countries and it's illuminating to
see how others have solved their problems."